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Business Resource Toolkit

2016 PAYROLL & TAX-RELATED REGULATORY CHANGES

Equip your business for the year ahead! The following tax guides were created to keep you informed and confident in your payroll management. 

Scroll down for our payroll calendar, state-by-state information, federal wage & tax rates, and more. Looking for 2015's information? Click here.

Stay updated on the latest payroll and tax regulations with the following:

All guides were published on January 15, 2016. Please check back for updates.

FREE DOWNLOAD: THE FULL 2016 QUICK WAGE & TAX GUIDE

 

Download the complete, state-by-state guide for free by clicking here:

Download Now!

 

Click here to download our free payroll processing calendar, too!

 

STATE-BY-STATE: CURRENT WAGE & TAX INFO 

AlabamaLouisianaOklahoma
AlaskaMaineOregon
ArizonaMarylandPennsylvania
ArkansasMassachusettsPuerto Rico
CaliforniaMichiganRhode Island
ColoradoMinnesotaSouth Carolina
ConnecticutMississippiSouth Dakota
DelawareMissouriTennessee
District of ColumbiaMontanaTexas
FloridaNebraskaU.S. Virgin Islands
GeorgiaNevadaUtah 
HawaiiNew HampshireVermont
IdahoNew JerseyVirginia
IllinoisNew MexicoWashington
IndianaNew YorkWest Virgina
IowaNorth CarolinaWisconsin
KansasNorth DakotaWyoming
KentuckyOhio 

 

FEDERAL WAGE & TAX RATES

Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. This limit is adjusted each year with changes in the national average wage index. This annual limit is called the contribution and benefit base.

For earnings in 2016 (unchanged from 2015), the Social Security taxable wage base is $118,500.

FICA - Social Security (OASDI Only) [top]

Social Security Taxable Wage Base per Employee$118,500
Employer Tax Rate for Social Security6.2%
Employee Tax Rate for Social Security6.2%
Self-Employed Tax Rate for Social Security12.4%

 

FICA – Medicare (Hospital Insurance Only) [top]

Medicare Taxable Wage Base per EmployeeNo Limit
Employer and Employee Tax Rate for Medicare1.45%
Self-Employed Tax Rate for Medicare2.9%

 

FUTA – Federal Unemployment Tax Act [top]

FUTA Taxable Wage Base per Employee$7,000
Employer Net Tax Rate0.6%

 

FEDERAL MINIMUM WAGE RATES [top]

Below are the federal minimum wage rates. Please note that some states have minimum wages that are higher than federal rates. Effective 7/24/2009.

 Minimum WageTipped Employee: Min. WageTip Credit (MAX)
Federal$7.25$2.13$5.12

 

For information on state minimum wage rates, head to the Department of Labor’s website by clicking here: State minimum wage rates.

PENSION PLAN LIMITS [top]

The federal government sets dollar limits as to how much an employee can contribute to their company’s qualified retirement plan each tax year. These limits are based on the cost-of-living index. If an employee reaches the age of 50 during the current tax year, they will qualify for the “Catch-Up Provision"… only if it is an established provision of the company’s 401(k) plan.

These limits have remained the same from 2015.

 Standard'Catch-Up' Provision
401(k) Limit for$18,000$24,000
SIMPLE IRA Plan for$12,500$15,500

 

 

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